New Limits For Legal Tender

Press, Volume CIII, Issue 30478, 27 June 1964, Page 3

New Limits For Legal Tender

(New Zealand Press Association)

WELLINGTON, June 26. New limits for legal tender are established by the Decimal Currency Bill now before the House of Representatives.

For copper and nickel five. 10, 20, and 50 cent coins the limit will be five dollars. For copper, tin and zinc, half, one, two, and five cent pieces the limit will be 20 cents.

Present law provides that silver or cupronickel coins are legal tender up to £2 and bronze coins, up to Is. Decimal equivalents of existing currency are formally defined as two dollars to the pound, 10 cents to the shilling and five-sixth of a cent to the penny. The legislation, which will apply to the Cook and Tokelau Islands as well as metropolitan New Zealand, repeals the Coinage Act, 1933, from the change-over date, yet to be proclaimed. It is expected the date will be July 11, 1967. Currency, coinage and legal tender provisions will apply from then. Other provisions of the bill take effect from its passing. Much of it is modelled on the Australian Currency Act, 1963, under which Australia is preparing for a changeover in February, 1966. "Shillings”

The term “shilling” will be retained for the 10-cent piece to be introduced with decimal currency, in terms of the Decimal Currency Bill Introduced today. The measure contains few other surprises.

The Opposition promptly declared its support for the principle of decimal currency—but gave notice that it will fight the choice of “dollar” and “cent” for the main new currency units, worth 10s and 1.2 d respectively. The bill embodies these terms in statute. Largely on

this issue, the bill will be referred shortly to a special select Parliamentary committee. Transition There will be further legislation yet to be produced to cover transition provisions, omitted from the major bill. Such matters include the use of existing coins during a transitional period, which is expected to run for up to two years from the change-over. Transitional legislation will also deliver a final verdict of the half-penny—or future half-cent—which the Government at present favours retaining.

Final reports on the halfcent from the Decimal Currency Board and the Statistics Department are pending.